Dogecoin (DOGE) costs rose considerably on Friday when Elon Musk introduced that Tesla would begin accepting them as cost for items.

Tesla merch purchasable with Dogecoin

— Elon Musk (@elonmusk) January 14, 2022

Following the announcement, DOGE worth surged nearly 13% to hit a 30-day excessive of $0.2150. Its transfer greater got here as half of a bigger intraday rally that occurred earlier than Musk’s Dogecoin tweet went viral.

DOGE worth surged over 25% on Friday earlier than correcting decrease to $0.1986 on revenue taking.

DOGE/USD hourly chart. Supply: TradingView

Higher than bitcoin

Tesla’s integration of a DOGE cost possibility into its on-line purchasing portal comes nearly a month after Musk introduced his willingness to check accepting the cryptocurrency as cost.

Central to Musk’s love for DOGE was its “higher than Bitcoin” capabilities, primarily as a cost possibility as a consequence of its decrease energy consumption. In excerpts from Musk’s testimony to Time Journal, he said the next:

“Mainly, Bitcoin is just not substitute for transaction currencies. Though it began as a foolish joke, Dogecoin is healthier fitted to transactions.”

The billionaire entrepreneur additional emphasised that the associated fee per transaction of Bitcoin is excessive, whereas the transaction quantity is low in comparison with DOGE. Consequently, Bitcoin could possibly be properly off being a retailer of worth. However, DOGE may proceed to encourage folks to spend.

What’s subsequent for DOGE?

The latest spherical of shopping for within the Dogecoin market eased off considerably as DOGE examined a multi-month resistance trendline for a breakout to the upside.

Intimately, the DOGE worth rally was rammed right into a descending trendline resistance that had restricted its upside since Might 2021. On Friday, the trendline was once more instrumental in sending DOGE from its intraday excessive of $0.2150 to $0.1958 as proven within the chart beneath.

DOGE/USD day by day chart. Supply: TradingView

In the meantime, the Dogecoin’s 200-day exponential transferring common (200-day EMA; the orange wave) additionally performed a key function in capping its positive aspects on Jan. 14. Collectively, the resistance confluence indicated that DOGE worth may retreat from its ongoing uptrend within the coming periods.

Additionally Learn: Dogecoin Creator Slams Mozilla for Suspending Crypto Donations

Ought to that occur, the token seems poised to check its 50-day EMA (the velvet wave) as help, with the opportunity of extending its correction in direction of $0.1367 primarily based on its latest historical past as help.

DOGE/USD day by day chart. Supply: TradingView

Conversely, a decisive break above the descending trendline resistance and the 200-day EMA may see merchants eyeing $0.30 as the subsequent upside goal within the Dogecoin market. The $0.30 space had beforehand served as resistance.

The views and opinions expressed herein are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it is best to do your personal analysis when making a choice.

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